NEW YORK – Kimberly-Clark Corp said on Monday it has agreed to acquire consumer health company Kenvue in a cash-and-stock deal valued at $48.7 billion, a move that combines brands like Kleenex and Huggies with Band-Aid and Tylenol to create a consumer staples giant.
The deal, one of the largest on Wall Street this year, would bring together 10 brands that each generate over $1 billion in annual sales. Shares of Kenvue, which was spun out of Johnson & Johnson last year, surged 15% in early trading. Shares of Kimberly-Clark fell 12%, reflecting the premium it is paying.
The acquisition marks a significant strategic shift for Kimberly-Clark, which has been pivoting its portfolio toward higher-growth and higher-margin businesses. The company recently sold a majority stake in its international tissue business and stopped producing private-label diapers to focus on its premium brands.
“Over the last several years, Kimberly-Clark has undertaken a significant transformation… We have built the foundation and this transaction is a powerful next step in our journey,” said Kimberly-Clark Chairman and CEO Mike Hsu.
For Kenvue, the deal offers a path forward after a challenging period as a standalone company. Its shares have fallen almost 35% from their initial public offering price in May 2023. The stock faced recent pressure after unfounded claims from former President Donald Trump linked the use of Tylenol’s active ingredient during pregnancy to autism, which the company and medical experts have strongly disputed.
Kenvue Chair Larry Merlo said the company’s board is “confident this combination represents the best path forward for our shareholders.”
The transaction, expected to close in the second half of 2026, is projected to generate about $1.9 billion in cost savings within the first three years. The combined company is forecast to have 2025 annual net revenues of roughly $32 billion.
Upon closing, the deal will also reignite a direct rivalry with Procter & Gamble, pitting Kenvue’s health brands like Sudafed and Pepcid against P&G’s Pepto Bismol and Vicks, though P&G remains a much larger company by market value.
Johnson & Johnson, which has sold its entire remaining stake in Kenvue, is not involved in the transaction.